Ep. 98 Investing in Multifamily Real Estate with Rob Ireland
Why Multifamily Real Estate Is a Smart Investment
Multifamily real estate has long been recognized as a resilient and potentially lucrative asset class. In a recent episode of Live Life Liberated, Chris Osmond, CFA, CAIA®, CFP®, Chief Investment Officer at Centura Wealth Advisory, sat down with Rob Ireland, Managing Director at Continental Realty Assets (CRA), to explore the advantages, strategies, and market trends shaping multifamily investments today.
In this discussion, they break down how strategic real estate investments can enhance portfolio diversification, reduce tax liabilities, and capitalize on long-term housing demand.
The Strategic Benefits of Multifamily Investing
According to Rob Ireland, multifamily real estate remains a strong investment choice due to its necessity-driven demand. “You don’t necessarily need a place to work anymore. You don’t necessarily need to have a brick-and-mortar store to sell your product, but you need a place to live,” he explains.
Some key advantages of investing in multifamily real estate include:
- Tax Efficiency: Investors can leverage depreciation, cost segregation analysis, and capital gains treatment to enhance returns.
- Steady Demand: Housing is a fundamental need, with supply constraints further driving long-term demand.
- Resilience in Market Cycles: Multifamily real estate has historically outperformed other commercial real estate asset classes.
Navigating Market Challenges & Opportunities
Despite current economic fluctuations, CRA remains optimistic about multifamily real estate. “Single-family homes are simply unaffordable for many,” says Ireland. “There’s a $680 delta between the cost to own a home and the cost to rent, so demand for multifamily housing remains strong.”
However, the market is not without challenges. Ireland notes that “high financing costs have slowed down new housing developments, which will compound the supply-demand imbalance in the coming years.” For investors, this creates an opportunity to acquire assets at a discount before the market corrects.
Centura & CRA: A Strategic Partnership
One of Centura’s guiding principles is ensuring strong alignment between investors and asset managers. “When we make any investment, particularly in alternatives, we want to establish a win-win-win outcome: a win for our clients, a win for our asset managers, and a win for Centura,” explains Osmond.
CRA’s rigorous market research and data-driven approach align well with Centura’s investment philosophy. “We look at job-to-permit ratios, affordability metrics, and economic trends before making any acquisition decision,” says Ireland. “We treat every market like a stock analyst would approach equities, ensuring we invest in the right locations at the right time.”
The Long-Term Outlook for Multifamily Investing
As interest rates stabilize and new supply dwindles, Ireland sees significant upside for investors in the coming years. “We believe that in 2025 or 2026, some markets may see double-digit rent growth again,” he predicts.
Quoting Warren Buffett, Ireland emphasizes, “Be fearful when others are greedy, be greedy when others are fearful. Right now is one of the best times in the last 20 years to invest in multifamily real estate.”
Learn More
For those interested in multifamily real estate investments and Centura’s approach, connect with Centura Wealth Advisory or reach out to CRA for more insights.
